You can pay $91 per month, starting next month, for the next 5 years to have...

You can pay $91 per month, starting next month, for the next 5 years to have a lawn mowing service. Alternatively, you can purchase a riding lawn mower and pay $506 today and mow your own lawn for 5 years, starting next month. If you decide to mow your own lawn, how much do you save in PV terms if your investments earn 3.31% APR, compounded monthly? Note: If you would lose money, make your answer with a negative sign (e.g., - 3458)

Expert Solution

If you decide to mow your own lawn, how much do you save in PV terms

=91*((1-(1+(3.31%/12))^(-5*12))/(3.31%/12))-506

=4519.74

the above is answer

jeff jeffy answered 2 years ago

You can pay $110 per month, starting next month, for the next 5 years to have a lawn mowing service.

You can pay $110 per month, starting next month, for the next 5 years to have a lawn mowing service. Alternatively, you can purchase a riding lawn mower and pay $587 today and mow your own lawn for 5 years, starting next month. If you decide to mow your own lawn, how much do you save in PV terms if your investments earn 4.92% APR, compounded monthly? Note: If you would lose money, make your answer with a negative sign...

1)Todd can afford to pay $390 per month for the next 7 years in order to...

1)Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent compounded monthly. What is the most he can afford to pay for a new car today? 2)Bob has been investing $7,500 in stock at the end of every year for the past 8 years. If the account is currently worth $93,400, what was his annual return on this investment? 3)You plan to save $390...

You plan to save $340 per month starting today for the next 43 years "just to...

You plan to save $340 per month starting today for the next 43 years "just to start the month off right." You feel that you can earn an interest rate of 10 percent compounded monthly. How much will there be in the account 43 years from today?

5. Suppose you start saving $15,000 per year (starting next year) for the 40 years you...

5. Suppose you start saving $15,000 per year (starting next year) for the 40 years you are working. How much can you withdraw each year for the 38 years you are retired? Assume that you earn an 8% return for the years you are saving and a 4% return for the years you are retired.

In order to have $12,000 in this account in 5 years, how much money should I add to this account each month starting from next month?

Currently, I have $2,500 in my bank account that pays 6% APR with monthly compounding. In order to have $12,000 in this account in 5 years, how much money should I add to this account each month starting from next month?

An investment will pay you $450 every month for the next 18 years and $4,500 at...

An investment will pay you $450 every month for the next 18 years and $4,500 at the end of 18 years. if you can earn 7.5% on your money, how much would you be willing to pay for this investment?

- You plan to visit France for 5 months, (starting next month).You will spend $6,248...

- You plan to visit France for 5 months, (starting next month). You will spend $6,248 in each of those months. How much do you need to invest today to just fund your visit if your investments earn 4.98% APR (compounded monthly)?- You will have a property tax payment due in 11 months that will cost $8,277. How much do you have to invest today to have just enough to pay your property tax bill if your investments earn 5.36%...

You are considering investment that is going to pay $1,500 a month starting 20 years from...

You are considering investment that is going to pay $1,500 a month starting 20 years from today for 15 years. If you can earn 8 percent return on any investment, compounded monthly, how much at most are you willing to pay for this investment opportunity? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Derek can deposit $283.00 per month for the next 10 years into an account at Bank...

Derek can deposit $283.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 15.00% and compounds interest monthly. Derek can deposit $2,468.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after...

Derek can deposit $254.00 per month for the next 10 years into an account at Bank...

Derek can deposit $254.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,488.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after...

Question